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10990 Roe Avenue
Overland Park, KS 66211
Phone 913 696 6100 Fax 913 696 6116
YRC Worldwide Reports First Quarter 2017 Results
OVERLAND PARK, Kan., May 4, 2017 YRC Worldwide Inc. (NASDAQ: YRCW) reported consolidated operating revenue for first quarter 2017 of $1.171 billion and a consolidated operating loss of $3.0 million, which included a $2.7 million loss on property disposals. As a comparison, for the first quarter 2016, the Company reported consolidated operating revenue of $1.120 billion and consolidated operating income of $13.4 million, which included a $0.3 million gain on property disposals.
Our Regional carriers first quarter 2017 results were generally in line with a year ago, including an increase in year-over-year tonnage per day, said James Welch, chief executive officer at YRC Worldwide. YRC Freights results in the first quarter were unfavorably impacted by a year-over-year decrease in revenue per hundredweight, excluding fuel surcharge, that more than offset increases in tonnage per day and weight per shipment. We expect the improvement in year-over-year tonnage per day to help us execute our strategy of pricing for profitability and moving shipments through YRC Freight, Holland, Reddaway and New Penns networks that have favorable freight characteristics. We believe the pricing environment remains stable in the less-than-truckload sector. Our goal in 2017 is to exceed our 2016 Adjusted EBITDA results while meeting our customers needs, stated Welch.
We continuously evaluate opportunities to drive improvements in operational efficiencies and financial results, including tightly managing our cost structure. During the first quarter we implemented a plan to reduce costs and de-layer our management and other non-union workforce. Headcount reduction is the most significant source of savings while other changes included increasing collaboration across our companies and reducing the utilization of external professional services, concluded Welch.
|||On a non-GAAP basis, the Company generated consolidated Adjusted EBITDA of $43.2 million in first quarter 2017 for an Adjusted EBITDA margin of 3.7% compared to $62.9 million and 5.6%, respectively, in the prior year comparable quarter (as detailed in the reconciliation below).|
|||Last twelve month (LTM) consolidated Adjusted EBITDA is $277.8 million for an adjusted EBITDA margin of 5.9% compared to $337.4 million and 7.1%, respectively, in 2016.|
|||The total debt-to-Adjusted EBITDA ratio for first quarter 2017 was 3.62 times compared to 3.20 times for first quarter 2016. This complied with the 3.85 times maximum total leverage ratio covenant as of March 31, 2017 under the Term Loan Credit Agreement.|
|||Reinvestment in the business continued during first quarter 2017 with $16.3 million in capital expenditures and new operating leases for revenue equipment with a capital value equivalent of $8.4 million, for a total of $24.7 million. This is equal to 2.1% of operating revenue for the quarter.|
|||To streamline overhead and augment operational efficiencies, the Company implemented a plan during the first quarter 2017 to eliminate approximately $25 million of costs over the next year. The savings include rightsizing the management and other non-union workforce by approximately 180 positions.|
The following information was filed by Yrc Worldwide Inc. (YRCW) on Thursday, May 4, 2017 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.
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